Credit Report Bureaus

What You Need To Know

Credit report bureaus work as agencies that, in short, report your financial history. They include information on your financial history particularly when it comes to paying off debts.

The credit reporting bureaus, or agencies list all of your outstanding accounts, and come up with a numerical formula that indicates your credit worthiness. This score that ranges from the low 300s, up to the high 800s.

The higher the score, indicates that you have had a history of paying your debts as outlined. So the more likely a person is to pay their debts, the more likely you will be able to obtain unsecured debt.

Unsecured debts include revolving accounts, such as monthly utility
bills, or credit card bills. There are other unsecured debts, such as
student loans, furniture accounts, or any type of accounts that gives a
you access to products, services, or money without any collateral having
to be put towards securing the value of the debt.

Most people
find that when they can pay their bills on time, and that when they
manage their credit report, that is, the information that appears and
how it appears, they will have higher credit scores.

On the
other hand, if you can’t pay your bills, and or you don't manage your
financial history and information, you FICO scores will be low.

What most folks don’t realize is that having a low FICO score will have a negative impact on your financial worthiness in many areas of your life.

You
won't be able to buy a home, the car of your choice, or in some cases,
you won't be able to obtain the employment of your choice, even if you
are otherwise qualified for that position. So it's important to work on
your financial worthiness so that you can have every opportunity in
life.

Because of recent legislation, you can get free copies of your credit report. When it comes to credit repair it is wise for you to know that there are certain other rights that the credit report bureaus must legally honor.

They can only keep negative information on the report for seven years maximum (except for bankruptcies). The information that is reported must be reported from the date that the account first went into collections, and not the date that one collection company sold the information to another.

A consumer is allowed to dispute any incorrect information on the report.

If a dispute is sent to the reporting agencies, the credit reporting bureaus must respond within 45 days. If the disputed information is backed up as factual, it has to be removed from the report.

One other thing that most people don’t realize about credit report bureaus. They are not in business to service you. They are in business to build and sell mailing lists based on collected demographic information on people like you and I.

Keeping your information up to date is not a priority for them so all the more reason credit repair should be a priority for you.